FOR IMMEDIATE RELEASE |
Temporary Denial Order Issued for Illegal Export of Satellite, Rocket, and Defense Technology to China
WASHINGTON, D.C. – Today, Matthew S. Axelrod, Assistant Secretary for Export
Enforcement at the U.S. Commerce Department’s Bureau of Industry and Security (BIS), issued
a Temporary Denial Order (TDO) suspending the export privileges of three U.S.-based
companies, Quicksilver Manufacturing Inc., Rapid Cut LLC, and U.S. Prototype Inc., for 180
days for the unauthorized export to China of technical drawings and blueprints used to 3-D print
satellite, rocket, and defense-related prototypes. This type of information is subject to strict U.S.
export controls due to its sensitivity and importance to U.S. national security. The TDO is
available online here.
“Outsourcing 3-D printing of space and defense prototypes to China harms U.S. national
security,” said Assistant Secretary of Commerce for Export Enforcement Matthew S.
Axelrod. “By sending their customers’ technical drawings and blueprints to China, these
companies may have saved a few bucks—but they did so at the collective expense of protecting
U.S. military technology.”
TDOs are some of the most significant civil sanctions BIS can issue, cutting off not only the
right to export items subject to the EAR from the U.S., but also to receive or participate in
exports from the United States or reexports of items subject to the EAR. The Assistant
Secretary’s order denies Quicksilver Manufacturing Inc., Rapid Cut LLC, and U.S. Prototype
Inc. all of the export privileges described in part 764 of the Export Administration Regulations
(EAR), which include (but are not limited to) applying for, obtaining, or using any license,
license exception, or export control document, or engaging in or benefitting from such
transactions, in order to prevent imminent violations of the EAR. The order was issued for a
renewable 180-day period and cuts off not only the companies’ ability to export from the United
States, but also their ability to receive or participate in exports from the United States.
As described in the TDO, Quicksilver Manufacturing Inc., Rapid Cut LLC, and U.S. Prototype
Inc., collectively utilizing the same rental mailbox, received export-controlled drawings from
their domestic customers to 3-D-print requested items. Without their customers’ advance
consent or knowledge, these drawings were provided to manufacturers in China to 3-D-print the
items without the required U.S. Government authorizations. The items were then imported into
the United States to be provided to the ordering customers.
The information illegally sent to China included sensitive prototype space and defense
technologies. This matter remains under investigation and customers of Quicksilver
Manufacturing Inc., Rapid Cut LLC, and U.S. Prototype Inc. are encouraged to review their
records to determine whether intellectual-property or export-controlled technology was provided
and/or potentially compromised. As set forth in the TDO, U.S. customers are also advised that
they are prohibited from taking any action that facilitates Quicksilver Manufacturing Inc., Rapid
Cut LLC, or U.S. Prototype Inc. taking possession or control of items subject to the EAR that are
intended for export.
Parties that suspect an export control violation has taken place are encouraged to e-mail:
[email protected] or call the Enforcement Hotline at 800-424-2980.
These BIS actions were taken under the authority of the Export Control Reform Act of 2018 and
its implementing regulations, the Export Administration Regulations (EAR).
BIS controls exports and reexports of dual-use commodities, technology and software for
reasons of national security, missile technology, nuclear non-proliferation, chemical and
biological non-proliferation, crime control and regional stability. Criminal and administrative
sanctions can be imposed for violations of the EAR. For more information, please visit:
https://www.bis.doc.gov/index.php/enforcement.
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